(Reuters) – Intel Corp (INTC.O) beat earnings expectations for the first quarter and raised its full-year revenue and profit forecasts on Thursday, driven by higher demand for chips from data centers and personal computers.

FILE PHOTO: The Intel logo is shown at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, U.S., June 13, 2017. REUTERS/Mike Blake/File Photo

Shares of the Santa Clara, California-based chipmaker rose 7.6 percent to $57.10 in after-market trading after the chipmaker said it expects its full-year revenue of $67.5 billion, up $2.5 billion from its prior guidance.

Intel has been focused on transforming itself from a supplier of personal computers to a maker of chips for growing data center business and newer areas such as driverless cars and artificial intelligence.

Revenue at Intel’s client computing, which supplies chips to PC makers and is the biggest contributor to sales, rose 3 percent to $8.2 billion, beating estimates of $7.91 billion, according to Thomson Reuters I/B/E/S.

Revenue from the data center business, seen as key to its shift from PC supplier, recorded its biggest gain of 24 percent to $5.2 billion, beating estimates of $4.73 billion.

The company’s net income rose to $4.45 billion, or 93 cents per share, in the quarter ended March 31, from $2.96 billion, or 61 cents per share, a year earlier.

Net revenue rose to $16.07 billion from $14.80 billion.

Excluding items, the chipmaker earned 87 cents per share.

Analysts on average were expecting Intel to report a profit of 72 cents per share on a revenue of $15.08 billion, according to Thomson Reuters I/B/E/S.

Reporting by Sonam Rai in Bengaluru; Editing by Arun Koyyur



Source link